It is suggested that the inquiry range is 20.70 to 24.15 yuan. We expect the fully diluted EPS of the company to be 0.45,0.69 and 1.00 yuan after 10, 11 and 12 years of issuance, and the growth rate of net profit for 11 years and 12 years will reach 54.5% and 44.4% respectively. Combined with the valuation of comparable companies in the same industry and taking into account the relatively certain performance growth of the company, we believe that the reasonable inquiry range is between 20.70 and 24.15 yuan, corresponding to a price-to-earnings ratio of 30 to 35 times in 2011.
The company is mainly engaged in the development, design, production and sales of automotive aluminum alloy precision die castings and their auto parts assembly. Its main products are engine front cover assembly, oil sump assembly, lower cylinder block, gearbox epitaxial chamber assembly, bearing seat and so on, which are used for automobile engine, gearbox and chassis system.
There is a huge market space for aluminum alloy die castings: in the future, with more attention to energy saving and emission reduction, the state will increase investment in the production and manufacture of lightweight and environment-friendly new materials for automobiles, and the degree of "aluminization" of cars in China will be further improved. the demand and permeability of aluminum alloy die-casting materials will also be greatly enhanced.
The company's future growth is clear: it has recently developed customers such as brilliance BMW, Chrysler and Dongfeng Nissan, and has entered the selection scope of the supporting system of Mercedes-Benz, Renault and other manufacturers. In the next 1-2 years, more than 50 new products will be gradually mass produced, thus boosting the company's performance growth; on the other hand, overseas orders have increased significantly, and the company's export business revenue is expected to grow by 72% and 49% respectively from 2011 to 2012.
Fund-raising projects help the company solve the capacity bottleneck. Fund-raising projects are expected to contribute 1800 tons, 4500 tons and 6000 tons of production capacity in 2011, 2012 and 2013, respectively, with capacity growth rates of 36.0%, 39.7% and 15.8%, respectively. The problem of insufficient production capacity of the company has been solved, and the total production capacity in 2013 has reached 2.2 times of the company's existing capacity, realizing the re-creation of "Hongte". In addition, with the release of production capacity, the proportion of outsourcing of the company's products is expected to decrease significantly, helping the company to further increase its gross profit margin.
